Granules India, a leading pharmaceutical company, recently unveiled its financial results for the fourth quarter (Q4) and fiscal year (FY) ending March 31, 2024.

The report showcased a blend of outcomes, with notable growth in profitability metrics juxtaposed against a decline in revenue.

In Q4-FY2024, Granules recorded revenue from operations totaling ₹11,758 crores, reflecting a modest 2 percent decrease compared to the previous year. This dip was primarily attributed to reduced sales volume and price erosion in Paracetamol Active Pharmaceutical Ingredients (API).

However, the company's formulations segment, including Granules Pharmaceutical Intermediates (GPI) manufactured products, witnessed a remarkable 41 percent growth. Additionally, the revenue share from North America surged to 70 percent in Q4-FY2024, marking a significant increase from 58 percent in Q4-FY23, signaling the success of Granules' global expansion endeavors.

Despite the revenue setback, Granules demonstrated improved profitability metrics. Both Q4 and FY2024 witnessed robust growth in gross margins. This uptick, coupled with increased contributions from new products, propelled Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) to ₹2,557 crores, marking a 12 percent YoY increase, and Profit After Tax (PAT) to ₹1,296 crores, marking an eight percent YoY rise.

Dr. Krishna Prasad Chigurupati, Chairman and Managing Director of Granules, addressed the results, acknowledging that fiscal year numbers fell below expectations due to a cyber incident and diminished paracetamol demand. However, he expressed confidence in the company's future strategies and the ongoing growth trajectory in formulations.

Granules India's mixed Q4 performance underscores both challenges and opportunities in the pharmaceutical landscape, highlighting the company's resilience and strategic focus amid evolving market dynamics.